Commerzbank’s Michael Pfister argues that the extended ceasefire with Iran and ongoing closure of the Strait of Hormuz keep global inflation risks elevated, even if EUR/USD does not currently reflect this.
The Pound Sterling (GBP) faces slight selling pressure against its major currency peers after the release of the United Kingdom (UK) Consumer Price Index (CPI) data for March. The British currency drops to near 1.3518 against the US Dollar (USD), but still holds little gains.
EUR/GBP extends its losses for the second successive day, trading around 0.8690 during the Asian hours on Wednesday. The currency cross remains subdued ahead of the United Kingdom’s (UK) March Consumer Price Index (CPI) data release.
The European Central Bank (ECB) Governing Council member Martins Kazaks said on Wednesday that the central bank has ‘luxury’ to wait on interest rate rises.
The USD/CAD pair fails to capitalize on the previous day's modest recovery from the 1.3630 region, or its lowest level since March 13, and remains on the back foot during the Asian session on Wednesday.
Asian equities perform mixed amid uncertainty over US–Iran peace talks. US Vice President JD Vance canceled his visit to Islamabad after Tehran declined talks via Pakistan.
According to a report from The Wall Street Journal (WSJ), the United States (US) has suspended shipments of US Dollars (USDs) to Iraq, which were proceeds from Federal Reserve Bank of New York accounts against oil sales, in an attempt to cripple an Iran-backed military group in Baghdad.
EUR/JPY remains subdued for the second successive day, trading around 187.10 during Asian hours on Wednesday. The technical analysis of the daily chart indicates the currency cross is remaining within an ascending channel, signaling a persistent bullish bias.
The NZD/USD pair gathers strength to around 0.5905 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) on hotter-than-expected domestic inflation data.
US Treasury secretary Scott Bessent said on Wednesday that the United States Navy will continue the blockade of Iranian ports, warning that constraints on maritime trade are aimed at targeting Iran’s main revenue sources.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding ground after registering modest gains in the previous day and trading around 98.40 during the Asian hours on Wednesday.